Top 5 Reasons Why Now Is the Time to Invest in Vacation Property
If you're like many people, your level of investing confidence has dropped in light of current economic conditions. Many of my clients are asking me what they can do to help rebuild their nest eggs. As a Member of the Top 5 in Real Estate Network®, I know that one of the best investments you can make right now is a vacation home.
While home values are still down—making this a once-in-a-lifetime opportunity to purchase a second home—you can count on the value of a vacation home heading north again soon. Here are five reasons why a vacation home is a smart and stable investment right now:
1. There are plenty of great deals to be had. Home prices are still down in most places. That means you might be able to pick up a vacation condo or cabin at a decent price.
2. Interest rates are still attractive right now. That's good news for anyone with good credit who's in the market for a mortgage.
3. You can use your rental income to offset your mortgage. And then some! Rent it out only 17 weeks of the year and your new vacation home could pay for itself. When your monthly mortgage payment is less than or equal to one peak-week rental, twelve weeks of rental will cover your mortgage payments for the entire year. Other costs, including bills for your phone, power, cable, and association dues, may be paid out of your earnings from approximately five off-week rentals.
4. It is fairly easy to market rental properties. There are many websites that make it easy and inexpensive for owners to market their vacation homes themselves. Plus, as more and more people realize the benefits of staying in vacation homes rather than hotels, the pool of potential guests grows by leaps and bounds.
5. There is increased interest in renting a vacation property. A fairly inexpensive stay in a nearby vacation home is often the perfect solution for today’s budget-conscious travelers. When airfare gets expensive, people start taking road trips instead. Even with gas prices relatively high, it's still far cheaper to drive a couple hundred miles than fly to some lavish vacation destination. The weak dollar is also making U.S. tourist destinations attractive to European travelers, whose currency is still strong.
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